Black Pepper

The pepper prices have been moving up consistently since last so many days and in between has touched few landmarks too like highest price of the decade in Indian market. Earleir, Indian farmers and stockists were holding on the stock as they had expected the price to touch INR 200 per kg during Sep-Oct but the July contract itself has almost reached that level and later months contracts are even higher. Higher Vietnamese origin prices and expectation of lower than estimated crop in Indonesia and Brazil has sent the world pepper market into bullish phase with prices literally not ready to settle down at any point and only increasing almost everyday.

Pepper futures market on Ncdex, India
July- US$ 4264 per ton (up by 6.41% this week)
Aug - US$ 4314 (jumped up by 6% against previous week closing)

Sep - US$ 4360, Oct - US$ 4401 , Nov - US$ 4436 , Dec - US$ 4469 per ton

International prices: Indian MG-1 is indicatively at US$ 4400-4425 per ton fob Kochi (Cochin port in Kerala State). Vietnamese origin pepper 550 g/l is at around US$ 4350 while 500 g/l at US$ 4050 per ton fob Hcmc port. Brazilian origin Asta - 580/600 at US$ 4400 per ton, B1 560 g/l at US$ 4300 and B2 500 g/l at US$ 4150 per ton all on fob Belem port basis for august / september shipment.

The estimated exports for Indian pepper during 2009-10 stood at 19750 dowm by more than 20% compared to previous year. Though U.S. is the single largest importer (8638.2e tons in 2009-10) U.S. import trend shows declining figure for Indian commodity as Indonesia has emerged as major source for United States pepper importers. U.K., Germany, Canada and Italy are the other major importers of Indian pepper.

Cumin Seed - Jeera

The cumin seed prices were up this week due to good local and export demand. The arrivals into the market too are low against offtake as stockists are holding onto the cumin stocks for better realisation. The estimated export for 2009-10 stands at 49750 tons with UAE as the biggest buyer followed by Brazil and U.S.A. India is the largest producer and exporter in world and Iran, Syria and Turkey are its main competitors in international market. With the crop due in its competing regions, the prices in Indian market shall be moving in tandem with them.

The Unjha, the biggest market of cumin sed in India where Gujarat and Rajasthan origins are available, spot prices:
Cumin Low quality - US$ 2620-2670 per ton ; Medium quality - US$ 2725-2825 ; High Quality - US$ 2925-3025 per ton

Cumin seed Futures prices on Ncdex
July - US$ 3019 per ton (up by 4.66% from last week's close)
Aug - US$ 3077 per ton (up by 4.91% this week)
Sep - US$ 3128 per ton (increase of 4.97% compared to previous week's closing)

Currency Impact - Indian rupee got weaker by around 0.25% against united states dollar this week not affecting the commodity prices much.